Cost-Benefit Analysis and numbers The cost-benefit analysis allows commercial construction subcontractors to compare expected potential revenues to likely potential costs. In effect, a cost-benefit analysis allows you to minimize risk and proceed only when there is more certainty than uncertainty. While the essence of decision making in the construction industry often calls for quick reasoning and decisive action, an adept cost-benefit analysis takes time to gather informatio

Editor’s note: Our social calendar (including blog posts) is scheduled weeks (sometimes months) in advance. The following post was written over a month ago and “calendared” at that time. In other words, we did not plan this post to coincide with the Coronavirus scare and reaction. But it has proven to be well-timed. Trust is about taking risks I learned of some folks who took in a young foster care child who had been abused by his parents. He was unwilling to trust. He couldn

Drone Thinking as a tool Before we begin, let’s get something cleared up. Capterra’s Rachel Burger wrote a blog post for The Balance Small Business titled, 6 Ways Drones Are Affecting the Construction Industry. She has some cool insight into how using drones is beneficial to construction contractors. It is worth the few minutes it takes to get her overview. Check it out, you may find a few bits you hadn’t already thought of. It’s good stuff. Yet, it isn’t what this article is

You need an accounting system for your construction contracting or service business because you need data. There are three basic reasons you need data. Because the federal as well as state and local governmental entities require it. And, let’s face it, running your construction contracting business from a prison cell would be much harder than any issues you’re currently facing. Because banks or lending institutions, as well as bonding businesses require it. Loan officers have

If you’re like many people who own construction contracting and service businesses, you likely have little to no financial training. That’s OK, you probably have a slew of other skills which allowed you to move into the realm of business owner. It is also likely that you put a lot of time and thought into knowing where your crews are, what they’re doing, and which tools and supplies they’ll need for the day. Yet, you may be less likely to know where your dollars are, what job

When you’re in the construction contracting business a lot rests on your ability to present an accurate bid. Before you bid your next job consider how your financial records and reports can and should strengthen your bidding accuracy. It isn’t about the luck of the draw, nor is it about hoping you get close. It is about knowing and understanding the basic numbers (i.e. how much the materials cost, how many people it will take, how many hours will be involved) as well as a sle